Gold: In a sideways channel

in gold •  5 years ago 

In the charts of late, Gold is seen trading in a sideways manner. The precious metal's value is around $1,461 per Oz in Asia.

The trendlines connecting Nov. 12 and Nov. 26 lows and Nov. 20 and Dec. 4 highs attest to the reading.

Should there be a confirmation of a channel breakdown, a resumption of the sell-off from highs above $1,500 would be seen. This in effect would open the doors for the 200-day average at $1,406. Currently, the lower edge is at $1,454.

As a breakdown is a possibility, the bears might take the upper hand. This is evidenced through the 50- and 100-day moving averages.

Also in the forecast is the Federal Reserve rate cut in 2020. As such, a range breakdown would prove slippery should the planned U.S. tariff hike on $160 billion of Chinese imports would happen on Sunday. In turn, this will boost haven demand for gold.

http://lexatrade.com/news/gold-in-a-sideways-channel

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